Three Undiscovered Gems in the United States to Enhance Your Portfolio

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Over the last 7 days, the market has dropped 1.9%. As for the longer term, the market has risen by 21% in the last year, with earnings forecast to grow by 15% annually. In this fluctuating environment, identifying stocks with strong fundamentals and growth potential can be key to enhancing your portfolio.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Morris State Bancshares

10.20%

-0.32%

6.73%

★★★★★★

River Financial

122.41%

16.43%

18.50%

★★★★★★

Teekay

NA

-6.48%

55.79%

★★★★★★

Mission Bancorp

25.37%

16.23%

20.16%

★★★★★★

Omega Flex

NA

1.31%

3.88%

★★★★★★

First Northern Community Bancorp

NA

7.12%

10.04%

★★★★★★

Longduoduo

NA

69.14%

101.50%

★★★★★★

Banco Latinoamericano de Comercio Exterior S. A

311.64%

21.07%

24.77%

★★★★★☆

Valhi

38.71%

2.57%

-19.76%

★★★★★☆

FRMO

0.17%

12.99%

23.62%

★★★★☆☆

Click here to see the full list of 217 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

Let's review some notable picks from our screened stocks.

Pathward Financial

Simply Wall St Value Rating: ★★★★★★

Overview: Pathward Financial, Inc., with a market cap of approximately $1.72 billion, operates as the bank holding company for Pathward, National Association, offering a range of banking products and services in the United States.

Operations: Pathward Financial generates revenue primarily from its Consumer segment ($401.69 million) and Commercial segment ($248.43 million), with additional contributions from Corporate Services ($46.78 million).

Pathward Financial, with total assets of US$7.5 billion and equity of US$765.2 million, has a net interest margin of 6.1%. Total deposits are US$6.4 billion, while loans stand at US$4.5 billion with an appropriate bad loan allowance at 1%. Recently, the company repurchased 286,920 shares for US$14.99 million and announced a dividend of $0.05 per share for Q4 2024 payable on October 1st to shareholders as of September 10th.

NasdaqGS:CASH Earnings and Revenue Growth as at Sep 2024
NasdaqGS:CASH Earnings and Revenue Growth as at Sep 2024

Build-A-Bear Workshop

Simply Wall St Value Rating: ★★★★★★

Overview: Build-A-Bear Workshop, Inc. operates as a multi-channel retailer of plush animals and related products in the United States, Canada, the United Kingdom, Ireland, and internationally with a market cap of $451.12 million.

Operations: The company generates revenue primarily from net retail sales ($451.93 million), commercial activities ($27.03 million), and international franchising ($4.42 million).

Build-A-Bear Workshop, known for its customizable plush toys, is trading at 52.8% below our fair value estimate and remains debt-free. Recent earnings results showed Q2 revenue at US$111.8 million and net income of US$8.78 million, up from US$109.23 million and US$8.34 million respectively a year ago. The company repurchased shares in 2024 and introduced an exclusive Hello Kitty plush to celebrate the brand's 50th anniversary, enhancing its appeal among collectors and fans alike.

NYSE:BBW Debt to Equity as at Sep 2024
NYSE:BBW Debt to Equity as at Sep 2024

Valhi

Simply Wall St Value Rating: ★★★★★☆

Overview: Valhi, Inc. operates in the chemicals, component products, and real estate management and development sectors across Europe, North America, the Asia Pacific, and internationally with a market cap of $826.49 million.

Operations: Valhi, Inc. generates revenue primarily from its chemicals segment ($1.78 billion), followed by component products ($157.40 million) and real estate management and development ($78.50 million).

Valhi's earnings have surged by 215.4% over the past year, significantly outpacing the Chemicals industry's -4.8%. The company reported a net income of US$19.9 million for Q2 2024, reversing a net loss of US$3.2 million from the previous year. Its debt to equity ratio has improved from 78% to 38.7% over five years, and interest payments are well covered with an EBIT coverage of 4.7x, indicating strong financial health and growth potential in a volatile market environment.

NYSE:VHI Earnings and Revenue Growth as at Sep 2024
NYSE:VHI Earnings and Revenue Growth as at Sep 2024

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NasdaqGS:CASH NYSE:BBW and NYSE:VHI.

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